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<\/a><\/p>\nSager said that consumers seek to take on more debt as they continue to feel the pinch of rising inflation that is significantly higher than in previous years.<\/p>\n
DebtBusters showed that the following three expenses make up the most amount of debt:<\/p>\n
- \n
- Vehicle and asset financing (VAF);<\/strong><\/li>\n
- Home loans and;<\/strong><\/li>\n
- Unsecured loans.<\/strong><\/li>\n<\/ul>\n
It reported that the majority of debt serviced by consumers is unsecured debt and that it has maintained stability since the second quarter of 2016. Despite this, DebtBusters expects vehicle and asset financing (VAF) to become increasingly difficult to pay off and add to the amount of debt taken on by consumers.<\/p>\n
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<\/a><\/p>\n“Vehicle debt has increased in the last few years, indicating that more consumers with assets (vehicles in particular) are seeking financial assistance,” said Sager.<\/p>\n
Vehicle financing group Wesbank reported earlier this year that the average value of new cars financed was R352,208 in June, down from R369,951 the month before.<\/p>\n
Banks are heavily relied on for loans to finance most of South Africa’s debt, including vehicles, reported DebtBusters. Roughly 8% of South Africans rely on unsecured lenders to cover their expenses and 4% on retailers, said Debtbusters.<\/p>\n
The size of the loans granted.\u00a0<\/strong><\/p>\n
The Debt Index for Q2 reported that the average unsecured loan granted was R41,100, <\/strong>while the average value of a secured loan was R206,000<\/strong>.<\/p>\n
- Home loans and;<\/strong><\/li>\n